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CIPS L4M5 Exam With Confidence Using Practice Dumps

Exam Code:
L4M5
Exam Name:
Commercial Negotiation
Vendor:
Questions:
317
Last Updated:
Jul 2, 2025
Exam Status:
Stable
CIPS L4M5

L4M5: CIPS Level 4 Diploma in Procurement and Supply Exam 2025 Study Guide Pdf and Test Engine

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Commercial Negotiation Questions and Answers

Question 1

There are many factors which will influence supplier pricing decisions. Which of the following are external factors that may apply? Select THREE that apply:

Options:

A.

Customer perceptions of value

B.

Cost of production

C.

Price elasticity of demand

D.

Environmental factors affecting the cost of raw materials

E.

Where the product is in its ‘lifecycle’

F.

Objectives of the organisation

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Question 2

Jessica Taylor, a senior buyer, is reflecting on her most recent negotiation. She has been asked by her manager to create a written record of performance.

Which of the following should Jessica include in this negotiation performance report? Select THREE that apply.

Options:

A.

Evaluation of the negotiator's performance

B.

Other suppliers that could have been used

C.

A checklist of points learned for the future

D.

Travel expenses to attend the meeting

E.

A detailed pricing structure

F.

A comparison of actual versus set objectives

Question 3

JCB is a large manufacturer of heavy machinery. The CPO is going to a negotiation with a Chinese supplier about procuring some major components. He is wondering about balance of power in the negotiation. Which of the following micro factors are most likely to shift the balance of power towards the buying organisation in this commercial negotiation? Select TWO that apply

Options:

A.

Buyers purchase in small volumes

B.

Suppliers are more concentrated than buyer

C.

Eruption of epidemic in supply market

D.

JCB's switching costs are low

E.

These components are highly standardised